Value in relation to price, not price alone, must determine your investment decisions.
If you look to Mr.Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor.
If you insist on looking to Mr.Market for investment guidance, however, you are probably best advised to hire someone else to manage your money.
Because security prices can change for any number of reasons (even without any reasons) and because it is impossible to know what expectations are reflected in any given price level, investors must look beyond security prices to underlying business value, always comparing the two as part of the investment process.
- Seth Klarman
If you look to Mr.Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor.
If you insist on looking to Mr.Market for investment guidance, however, you are probably best advised to hire someone else to manage your money.
Because security prices can change for any number of reasons (even without any reasons) and because it is impossible to know what expectations are reflected in any given price level, investors must look beyond security prices to underlying business value, always comparing the two as part of the investment process.
- Seth Klarman
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